The European Bank for Reconstruction and Development (EBRD) sharply lowered its 2012 growth forecast for Ukraine`s economy to 2.5 percent Tuesday, from its previous estimate of 3.5 percent, amid risks triggered by the ongoing eurozone crisis, according to Xinhua.

"As the largest economy in the region (Eastern Europe and the Caucasus), Ukraine is likely to be affected by the eurozone crisis," the EBRD said in a statement on its website.

Despite a rebound in its economy stimulated by external and domestic demand, Ukraine`s industrial production growth slowed in the fourth quarter of 2011 and the risks in financial markets increased, according to EBRD.

In December 2011, the World Bank halved its forecast for Ukrainian GDP growth in 2012 from 5 percent to 2.5 percent.

The Ukrainian government, however, is targeting 5-6 percent growth rate in 2012.

In 2011, the country`s GDP expanded 5 percent, Prime Minister Mykola Azarov said on Jan. 11.